Rebates appear to be popular in today’s market. Rebates are all over the place. In the physical world, there are mail-in rebates and instant rebates available on every product imaginable, from computers to home appliances to automobiles. The rebate can be found all over the internet. Rebates are available on a wide range of programs, software, products, and services.
A rebate is simply a discount on expensive clothing. The underlying principle is the same. The customer pays less than the list price for whatever program, software, product, or service he or she is purchasing. The customer is getting a good deal. That is correct. The question is, however, what exactly does the seller receive?
The answer to the question, “How much does the seller receive?” is straightforward. On each sale, the seller receives less money than he is entitled to.
If the seller offers a 50% rebate, he must sell twice as many programs, software copies, products, or services to make the same amount of money he would have made if he hadn’t offered the 50% discount.
The seller is giving away his profit, particularly if the seller is an affiliate marketer, because any rebate offered by an affiliate marketer to his customers is deducted from his commission. For example, if you are marketing a product that sells for $197.00 and you earn $98.50 from it, offering a $50 rebate means that you have earned $50.50.
You’re not going to make a lot of money per sale. That can’t be a good thing, can it? There must be a better way than offering large rebates…and, thankfully, there is.
One of the major issues with offering large rebates is that the offer attracts what are known in the industry as “cheap customers.” Customers who are cheap are those who never expect to pay full price for anything, under any circumstances. They expect to get something for nothing, and that expectation will always come out of your pocket. Simply put, you are better off without cheap customers.
The answer to the rebate question is simple: give your customers a compelling reason to purchase from you at full price. Even if you have to pay for incentive bonuses, it is preferable to offering a customer rebate.
You will attract a higher-quality customer base that will continue to purchase from you. Many affiliate marketers believe that providing incentive bonuses valuable enough to entice people to pay full price for an item is simply too difficult. They will inform you that It is much easier, faster, and less work to simply offer a rebate or a discount than it is to find bonus incentives.
Okay, then. I concur. Offering a rebate or a discount is certainly easier, faster, and requires far less effort than locating bonus incentives of sufficient value to compel a customer to pay full price for a product or service. It is, however, not the best option.
Customers who will be attracted by deep discounts and 50% rebates are the cheap customers, and once you discount or offer a rebate, they will expect you to do so with every product or service you ever offer them. You’ll be working for peanuts when you could be working for the entire peanut gallery.
Don’t Waste Time
Don’t waste time worrying about slacker affiliate marketers who offer steep discounts or large rebates. They will attract the low-quality customers you don’t want anyway, and those slacker affiliate marketers will never be a threat to you.
If you are willing to go to the trouble, put in the effort, and look for incentive bonuses that allow you to sell products at full price to your customers, you will leave those lazy affiliate marketers in the dust.
Before you offer a rebate or a discount on a product or service, consider why you became an affiliate marketer in the first place.
Did you become an affiliate marketer with the intention of barely scraping by, or did you intend to make a very nice annual income that would provide a very nice lifestyle for you and your family? I doubt that making a living was your primary motivation for becoming an affiliate marketer.
Consider this: every time you accept less than you could get for a product, you are giving up the lifestyle you have worked for and settling for less than you deserve not only for yourself but also for your family.
Accepting less is never a good idea. It is simply not necessary to offer a large rebate or a deep discount in order to sell a high-quality product.
People require, desire, and will pay for the products and services that they require. It is not necessary to give away your profits if you work harder and find incentive bonuses that will entice your customers to purchase the products and services that they require from you.
Don’t offer a discount or a rebate on the product. Instead, increase the product’s value. Remember that increasing the value of the product or service you are attempting to sell is preferable to decreasing its value. People do not always consider a discount or a rebate to be valuable.
They sometimes interpret it as an attempt to entice them into purchasing a product that was never worth the full price to begin with.
Only the most frugal customers will seek a rebate or discount. Good customers will shop around to see what the best incentives are available. If you create the best bonus incentives, you will attract the best customers and be able to charge the full asking price every time and for every product or service that you promote.
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